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Under siege by activist investors including Dan Loeb and Marcato Capital Management, Sotheby’s posted third quarter earnings after the bell on Monday, beating top and bottom line estimates. Amid allegations of expensive lunches on shareholders’ tab and inefficient usage of capital, chief executive Bill Ruprecht spoke of aggressive cost cutting expected for next year, while boasting of a dramatic jump in private sales and auction commissions.

The auction house founded in 1744 posted a net loss of $30.1 million, which represents a $2.4 million improvement from a year ago in the cyclically weak third quarter. In a per share basis, Sotheby’s lost 44 cents, beating Wall Street’s consensus estimate by a penny.

With management engaged in a war of words with billionaire hedge fund manager Dan Loeb, Sotheby’s saw a 57.6% surge in revenue to $107.9 million. Sotheby’s has been focused on targeting higher end clients while expanding its private sales business; the company saw some success in the third quarter, with private sales commissions surging 77% and auction commissions increasing 16%. Net auction sales rose 5% year-to-date to $2.4 billion, while private sales jumped 37% to nearly $1 billion.

Costs also grew dramatically, with total expenses up 33.7% to $142.2 million, primarily on increased dealer costs and higher salary expense. After being challenged by activist investor Dan Loeb, Sotheby’s’ management team has been reviewing its capital allocation and financial expense policies.

"The financial review we have undertaken goes beyond capital allocation, and includes an in-depth examination of our strategy, business and cost structure," said Patrick McClymont, Sotheby's Chief Financial Officer. "In addition to making strategic investments in Sotheby's future growth, we remain committed to growing with discipline. As part of our annual planning process, we are conducting a thorough review of our cost structure to identify expense savings in 2014," McClymont explained, adding he expects direct costs as a percentage of net auction sales to fall in 2014, along with material savings coming from reduced discretionary spending.

Sotheby’s is one of the major players in the world of luxury, and the only big auction house to trade in public markets. The company has been in the eye of the storm after Dan Loeb built a considerable position in Sotheby’s, and then went on to publicly blast management for excessive compensation, consecutive perks, and a lack of strategy. Loeb has even called for chief executive Ruprecht’s resignation, and noted he would be glad to take on a board seat and help with the search for a new CEO.

Shares in Sotheby’s, though, have had a pretty good 2013, rallying nearly 50% thus far. It has been one of the best performers in the luxury goods sector, alongside Michael Kors, leaving names like Tiffany's, , Tumi, and Bernard Arnault’s LVMH in the dust.

Investors appeared initially pleased with Sotheby’s third quarter financial performance. In post-market trading, the stock gained 2.3% to $51.04 by 4:37 PM in New York.